Transcript AFIRUM

Institute of Management and Rural Development
INTAS Research Project on Agri-food Industry
Restructuring in Ukraine and Moldova (AFIRUM)
GDP per capita has decreased in comparison with 1993
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US$
500
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Moldova is an agricultural economy.
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Agriculture represents 22,3% of GDP.
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The most part of industrial base is in
Transnistria region.
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Incomplete structural transformation of
enterprises is one of the biggest obstacles
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to economic growth.
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The present situation in agriculture was
determined by authority's unwillingness
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1993 1994 1995 1996 1997 1998 1999,
prel.
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to restructure collective and state farms.
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Value Added by sector;
% (1993 – 1999)
Source: Department of Statistical and Sociological Analysis
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Structure of agricultural land in Moldova at the beginning of
1999
Orchards
7%
Vineyards
7%
Pastures
15%
Arable land
71%
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The total area of the Republic of Moldova is 3384,4 thousands hectares.
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The weight of agricultural land in total land area is 75,5 % .
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Arable land occupy the area of 2556,6 thousands hectares or 71 % of the
total of agricultural land.
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Process of formal land privatisation is not finished yet
State land
owners
18%
Private
land
owners
82%
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Not state land owners still does not mean individual property.
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Only about 20 % of agricultural land is owned by real individual farmers
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The most part of the land is owned by divers forms of collective farms
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Mostly all new collective farms keeps the old mentality
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Food processing leads the industry
Food
processing
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Electric
energy
Agriculture and food processing
account for two thirds of national
Engineering
income and employ about 42% of
Other
the labour force.
Light industry
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Chemicals
mostly on local resources
Construction
materials
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Wood
procssing
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Only agricultural sector employs
about 700 thousand people.
%
Glass industry
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Moldova’s national economy is based
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Structure of Production by Industrial Category;
Constant Prices, Lei Million
Source: Department of Statistical and Sociological Analysis
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Structure of Food Processing Production;
Constant Prices, Lei Million
Source: Department of Statistical and Sociological Analysis
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In 1999 agri-food industry continued the trend of previous years
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The overall industrial
output in 1999 was
Moldovan lei (MDL) 8.055
billion in current prices.
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Real output decreased by 9
per cent compared to 1998.
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Agricultural production in
1999 in current prices was
MDL 5.370 billion.
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Agricultural output was 8
per cent lower than in the
same period in 1998.
Industry and agricultural production decleaning
(per cent in comparison with 1998)
Animal production
3,0
Crop-growing sector
10,0
Bread
23,7
Diary products
15,4
Canned and processed Fruit&Veg
19,2
Sugar
36,5
Wine
15,2
0
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40
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Main problems of processing industry
 Equipment
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82% of all equipment is old
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Power consume of this equipment is 1,5-3,0 times more than of similar modern
equipment.
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This equipment can not assure the quality is acquired by foreign customers.
 Row material
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Quantities of delivered row material are decreasing steadily during last years.
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Processing industry capacities are used only for 15%.
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Common problems for agri-food sector
Marketing
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“Product” orientation instead of “customer” oriented production
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Lack of branded products
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Insufficient knowledge about customer’s demands
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Pricing policies do not respond to real situation
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Lack of reliable trade partners
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Types and forms of Business Activities
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Individual owners;
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Partnership;
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Corporations or joint stock companies;
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Companies limited by shares;
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Co-operative producers;
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Lease-hold enterprises;
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Collective enterprises;
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Municipal enterprises;
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State owned enterprises.
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Structure of export
Other
countries
CEE
countries
EU
countries
CIS
countries
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•Moldova's foreign trade is still
6,3%
oriented towards CIS countries.
•53% of exports is going to
10,9%
Russia.
•Other 12,8 % of exports are
13,3%
going to Ukraine and Belarus
•Roumania is one of the main
65,8%
trade partners from CEE region.
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The average wage do not cover the minimal consumer budget
Lei
400
337,9
350
303,4
300
250
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The average monthly pension is
Lei 83.5, the same as one year
ago.
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218,5
200
166,7
129,9
The average level of salaries in
1999 was 303 lei per country and
166 lei in agriculture.
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171,8
138,3
Wage arrears reached Lei 527.3
million.
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Over the first three months of
2000 the arrears to pensioners
declined from Lei 300.2 million to
Lei 265.7 million.
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50
0
1997
1998
Agriculture
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1999
22.000
In the Economy
The minimal consumer budget
in February 2000 equalled to Lei
973.
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FDI into Moldova have a steadily rising trend
Major investors are companies
from France -34% and USA - 30%
of total direct investment
USD millions
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314,5
351,4
34% of FDI was made in
manufacturing, 33% in energy and
utilities and 15 % in trade
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 There are about 1807 enterprises
with foreign capital in Moldova
1996
1997
1998
October
1999
Lafarge (France) - 52 per cent stake in Ciment
Europharm, Inc. (USA) - 85 per cent of Farmaco
Esastampa (Italy) - 60 per cent in Piele.
Steillmann Gruppe (Germany) 65 per cent of Balteanca
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Voxtel (France) is Moldova’s
largest foreign investor to date.
Sudzuker AG (Germany) bought 36
per cent stakes in four Moldovan
sugar plants (Drochia, Donduseni,
Alexandreni and Glodeni)
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